On the first trading day of the week, Sunday, Nepal Reinsurance Company and Himalayan Reinsurance Company topped the market in terms of turnover. Nepal Reinsurance recorded the highest turnover with Rs. 75.39 crores, followed by Himalayan Reinsurance with Rs. 71.55 crores.
Rise in Trading Due to Rights Share Plans
The main reason for the rise in their trading volume is due to the discussion around rights share issuance. Nepal Reinsurance has recently received board approval to issue 100% rights shares. Similarly, Himalayan Reinsurance also plans to raise its paid-up capital through rights shares.
Both companies have committed to the Insurance Board of Nepal to increase their paid-up capital to at least Rs. 20 Arba (Rs. 20 billion) by the end of the Nepali month of Magh. Currently, Himalayan Reinsurance has a paid-up capital of Rs. 10.86 Arba, while Nepal Reinsurance stands at Rs. 13.42 Arba.
Stock Prices Hit Record Highs, Then Decline
Last Wednesday, Nepal Reinsurance’s share price reached an all-time high of Rs. 1,625 per share after the adjustment for bonus shares. Likewise, Himalayan Reinsurance’s stock hit a new high of Rs. 1,100 per share on Thursday.
However, both companies also saw price declines. On Sunday, Nepal Reinsurance’s price dropped by 5.85%, and Himalayan Reinsurance fell by 4.32%. The stock prices appear to follow the overall market trend closely—rising with the market and falling as it drops.
Broker-wise Trading Activity
On Sunday, Broker 45 (Imperial) was the most active buyer of Himalayan Reinsurance shares, purchasing 39,668 shares. On the other hand, Broker 56 (Shreehari) sold the highest number of Himalayan Reinsurance shares, with 36,598 shares sold.
Other major buyers of Himalayan Reinsurance shares included:
Broker 49 (Online): 36,669 shares
Broker 60 (Nagarik Stock Dealer): 34,280 shares
Broker 57 (Aryatara): 33,478 shares
Major sellers included:
Broker 44 (Dynamic): 29,301 shares
Broker 45 (Imperial): 27,389 shares
Broker 53 (Investment Management): 27,382 shares
For Nepal Reinsurance, Broker 55 (Bhrikuti) bought the highest number of shares at 207,704 units, while Broker 58 (NASA) sold the most at 189,964 units.
Additional trading for Nepal Reinsurance included:
Broker 96 (Himalayan): 26,082 shares bought
Broker 62 (Capital Max): 14,735 shares bought
Broker 50 (Crystal): 39,361 shares sold
Broker 42 (Sunny): 19,071 shares sold
Conclusion
Both Nepal Reinsurance and Himalayan Reinsurance have become key attractions in the stock market due to upcoming rights shares and plans to increase capital. Investors are closely watching their price movements and trading activity, which are likely to remain high in the coming days
